LITTLE ROCK (AP) — Directors of community health centers that serve some of the poorest Arkansans in areas with a dearth of medical providers told legislators Thursday that they oppose a provision in a health care expansion plan that could lower their revenue.

The centers provide medical, dental and mental health services mainly to people with no health insurance or limited coverage. Legislators disagreed about the severity of the revenue losses the centers may face when Arkansas adds coverage to 500,000 people under a private insurance option that will be funded under the state Medicaid program.

State Sen. Stephanie Flowers, D-Pine Bluff, said it would be a “travesty” if people who need medical care can’t be treated if the centers lose revenue because reimbursements drop.

“We can’t dismiss these people,” Flowers said.

But Rep. John Burris, R-Harrison, co-chairman of the Joint Public Health Committee, said he disagreed with the notion that the centers wouldn’t have enough money. He argued the most vulnerable patients would be deemed frail by the Medicaid system, which puts them in a different financial category and that treating them won’t fall under the coming private insurance plan.

Rep. Reginald Murdock, D-Marianna, said that Lee County, which he said doesn’t even have a McDonald’s, has a terrible time attracting doctors despite having a population with generally poor health.

“I want to hear you talk about what you’ve done for these unique populations,” said Murdock, who is also an advocate for better treatment for patients with sickle cell anemia.

State Department of Human Service Director John Selig told the panel that he believes adding insurance coverage for a half-million residents will make the state generally more attractive to providers. He also said he’s had talks with Gov. Mike Beebe about ensuring that there is funding available to keep the community health centers from seeing revenue drops under the new system.

“We do not want to harm these entities,” Selig said.

Burris acknowledged the committee didn’t have the authority to change the state’s waiver application under which the private option insurance plan would become of President Barack Obama’s health overhaul.

Allan Nichols, CEO of Mainline Health Systems, which runs community health centers in four counties in far southeast Arkansas, said those clinics are the only sources for medical care in the region. Burris suggested a healthy 27-year-old man who needs treatment for a cold shouldn’t be consuming resources from a community health center when its services are needed by people with much greater health problems.

But Nichols said that in his region, that patient would only have the community health center as an option.

Nichols said the centers are “very fragile” and that diminished revenue would result in reduced services.

“I can list the providers that won’t be here for these (financial) bumps,” he said. “It’s not possible to take the hit.”

The federal government is paying for the state’s health care expansion for three years.

Insurance Commissioner Jay Bradford also addressed the panel and said that the income of people getting the new coverage will be verified. Small changes in income may not be revealed immediately but Burris said he was confident the system would root out someone who won a big lottery jackpot or someone listed as unemployed who had found a job and now has an income.

Legislators also got an update from Jay Shue, who runs the newly created Medicaid Inspector General office.

The office was created by the Legislature during its session earlier this year and funding started on July 1.

Shue said six audits already have been launched of Medicaid service providers and a number of audits that began before the office was created are being finished. He said one audit will be referred to prosecutors.

Shue told legislators that his office would review spending by providers under the Medicaid expansion.